Kohl's same-store sales increase, shares rise
(Reuters) - Department store chain Kohl's Corp (KSS.N: Quote) reported a rise in quarterly comparable-store sales, boosting its shares, after downbeat sales reports from Wal-Mart Stores Inc (WMT.N: Quote) and Macy's Inc (M.N: Quote) raised fears of a slowdown in consumer spending.
Shares of Kohl's, which caters to price-sensitive middle-class shoppers, rose 6 percent in early trading.
The S&P 500 Department Stores Index .SPLRCRETD closed down 2.2 percent on Wednesday, after Macy's reported an unexpected decline in sales saying consumers hesitated to spend on non-essential items in a weak economy.
Discount chain Wal-Mart also reported a fall in comparable store sales on Thursday.
"There was a lot of relief their (Kohl's) comparable sales rose after yesterday's poor numbers from Macy's and earlier warnings from Aeropostale ARO.N and American Eagle Outfitters (AEO.N: Quote)," Edward Jones analyst Brian Yarbrough said.
Teen-apparel retailers Aeropostale and American Eagle earlier this month dressed down their profit outlooks, citing weak sales and margins.
Second-quarter same-store sales at Kohl's rose 0.9 percent but fell short of the average analyst estimate of a rise of 1.1 percent, according to Thomson Reuters I/B/E/S.
Overall sales rose 2 percent to $4.29 billion, in line with analysts' estimates.
The company's shares were up 5 percent at $53.50 on the New York Stock Exchange. Continued...